3/08/2006 @ 12:55PM

New Spitzer Suit Targets Radio Side Of Payola

Eliot Spitzer filed a lawsuit Wednesday, targeting another firm in the New York state attorney general’s “payola” probe.

The suit alleges that such niceties as presents, sojourns and good old cash were doled out in exchange for air time at radio stations owned by
Entercom Communications
.

The AG was quoted by The Associated Press as declaring, “We have moved from the label side, those who put out the records and are forced to pay for air time, and switched to the radio conglomerates…that are extracting money,”

Bala Cynwyd, Penn.-based Entercom is one of the top U.S. radio chains, an owner-operator of 105 radio stations.

Previous firms whose names ended up in Spitzer’s payola probe included
Warner Music Group
and Sony BMG Music Entertainment, a joint venture of
Sony
and Bertelsmann. In probe settlements last year, WMG agreed to pay $5 million and Sony BMG agreed to pay $10 million.

Spitzer explicated that said payola violates radio stations’ federal licenses and New York state civil law. He was also quoted as suggesting that the U.S. Federal Communications Commission has been “asleep at the switch” on payola–and should consider revoking the Entercom stations’ licenses.